LTR: it depends on the demographic you are likely to be catering towards, but school districts, low traffic, quiet, etc.While I don't live in a tourist hotbed, I know many that bought cheap properties to Airbnb without thinking through the whole package, and they were doing okay, at best, in the height of cheap debt and people traveling all the time, and many have since sold since Airbnb has become over saturated and like many in real estate over the last 5 years, the good ones are able to survive and those that got too excited are struggling.

However the area is definitely saturated

Converting some units to STR's could be a way to increase cashflow as long as its legally possible and your market isn't over-saturated.

My market is very saturated. 

I am also worried about the over saturation of the STR market in this location (Hilton Head, SC). 

Many feel the buy-in is a lot more conducive than other more saturated markets.

I don't think this is due to a lack of travel, but the market has been absolutely saturated in the past couple of years.

The myriad of internet coaches trying to sell the get rich quick wholesale method and it is saturating the market with yahoo's.

So many markets are saturated with buyers, making finding deals difficult.

From my research, the smokies looks saturated clearly.